Meanwhile, the Japanese yen slumped, reflecting global markets’ increasing scrutiny of fresh turmoil in international trade sparked by US tariff policies.

The dollar index rebounded, climbing 0.2% to 97.90, as investors weighed the impact of the latest trade developments. The euro eased 0.14% to $1.1768, while the yen sank 0.4% to 155.27 per dollar. The British pound also dipped 0.08% to $1.3478.

The US dollar managed to stabilize after regaining ground when markets in China and Japan reopened after holidays. The currency’s comeback was further supported by comments from US President Donald Trump, who warned nations against backing away from recent trade agreements following a court ruling against his emergency tariffs.

In a sign of escalating tension between major economies, China announced export controls targeting Japanese firms, contributing to the yen’s decline.